EU’s continued funding is vital support for global standards, says accountancy body

Belgium 13 Mar 2014

The regulation in its final form allows for the independence of IASB, but with suitable scrutiny and evaluation of their activity in the six year period by EU institutions. EFRAG’s funding for only the next two years reflects its current re-organisation which is still ongoing, also with the benefit of the work of Philippe Maystadt. We are also hoping for a satisfactory outcome there which will give the EU an enhanced endorsement advisory system and foster European influence in the development of IFRS

—Richard Martin, head of corporate reporting,ACCA

ACCA (the Association of Chartered Certified Accountants) welcomes the endorsement by the European Parliament of the proposed regulation for a Union programme in the field of financial reporting and auditing 2014-2020

The European Parliament has today approved continued funding for the International Financial Reporting Standards (IFRS) Foundation, the European Financial Reporting Advisory Group (EFRAG) and the Public Interest Oversight Board (PIOB) for the period of 2014-2020 (EFRAG for the period 2014-2016).

This is to assist with the development of high quality global standards ensuring comparability and transparency of listed company accounts that are needed to maintain the common financial reporting framework. That framework is essential for the internal market, for the effective functioning of the capital markets and for the realisation of the integrated market for financial services in the Union.

The funding programme was established after taking into account the the recommendations of Philippe Maystadt, Special Advisor to the Commissioner responsible for internal market and services, who discussed his findings for the first time at an ACCA event in Brussels in December 2013.

Richard Martin, Head of Corporate Reporting at ACCA, says: 'We welcome this vote as continued support for the development of IFRS, the EU endorsement of IFRS and for the oversight of auditing standards. Since 2002, when EU decided to introduce the IFRS, their uptake around the world has advanced and Europe has benefitted significantly from this global accounting language in fostering investment. Appropriate funding from the EU is essential for the continued development of the standards and to ensure European influence over that development.'

Richard Martin adds: 'IFRS are designed to provide investors with maximum transparency, equip them with relevant information and unbiased performance measurements. That enables them to make better decisions, both for short and the long term, which is crucial for the recovery in Europe.'

'The regulation in its final form allows for the independence of IASB, but with suitable scrutiny and evaluation of their activity in the six year period by EU institutions. EFRAG’s funding for only the next two years reflects its current re-organisation which is still ongoing, also with the benefit of the work of Philippe Maystadt. We are also hoping for a satisfactory outcome there which will give the EU an enhanced endorsement advisory system and foster European influence in the development of IFRS' concludes Richard Martin.

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ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

We support our 162,000 members and 428,000 students in 173 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 89 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.